PROG (US:PRG)2024-10-23 12:21Financial Performance - Consolidated revenues for Q3 2024 were $606.1 million, a 4.0% increase from Q3 2023[3]. - Net earnings for the quarter were $84.0 million, significantly up from $35.0 million in the prior year, primarily due to a $53.6 million non-cash tax benefit[4]. - Adjusted EBITDA for Q3 2024 was $63.5 million, representing 10.5% of revenues, down from 12.3% in the same period last year[4]. - Diluted EPS for Q3 2024 was $1.94, compared to $0.76 in the same period last year; non-GAAP diluted EPS was $0.77, down from $0.90[5]. - Net earnings for the nine months ended September 30, 2024, were $139,702, up 16.2% from $120,263 in the same period of 2023[15]. - Basic earnings per share for Q3 2024 were $1.99, significantly higher than $0.77 in Q3 2023[13]. - Consolidated total net earnings for the nine months ended September 30, 2024, were $139,702,000, compared to $120,263,000 for the same period in 2023, representing a year-over-year increase of approximately 16.2%[31][32]. Revenue and Growth Metrics - Progressive Leasing's GMV reached $456.7 million, reflecting an 11.6% year-over-year growth[6]. - Total revenues for the three months ended September 30, 2024, reached $606,145 thousand, an increase from $582,877 thousand in the same period of 2023, representing a growth of approximately 4.3%[16][17]. - Lease revenues and fees for Q3 2024 reached $582,551, an increase of 3.3% from $564,183 in Q3 2023[13]. - Interest and fees on loans receivable totaled $23,594 for Q3 2024, compared to $18,694 in Q3 2023, reflecting a growth of 26.5%[13]. - The company experienced a gross merchandise volume of $557,464 thousand for the three months ended September 30, 2024, compared to $464,044 thousand in the same period of 2023, indicating a growth of approximately 20.1%[21]. Cash and Debt Management - The company ended Q3 2024 with cash of $221.7 million and gross debt of $600 million[7]. - Cash and cash equivalents increased to $221,726 as of September 30, 2024, compared to $155,416 at the end of 2023, marking a growth of 42.5%[14]. - Total liabilities decreased to $815,533 as of September 30, 2024, compared to $899,924 at the end of 2023, a reduction of 9.4%[14]. - The company repurchased $37.0 million of its stock at an average price of $45.69 per share, with $401.8 million remaining under its repurchase program[7]. Future Outlook and Projections - The full year 2024 revenue outlook was revised to a range of $2,440,000 to $2,460,000, with net earnings expected between $165,500 and $170,500[8]. - The company anticipates continued focus on market expansion and new product development in the upcoming quarters, aiming to enhance revenue streams and customer engagement[22]. - The projected adjusted EBITDA for the full year 2024 is estimated to be between $270,000,000 and $275,000,000, reflecting a potential decline from previous estimates[33][35]. - The company expects net earnings for the full year 2024 to range from $165,500,000 to $170,500,000, with projected earnings before income tax expenses of $162,500,000 to $165,500,000[33]. - The projected non-GAAP earnings per share for the full year 2024 is expected to be between $3.30 and $3.40, reflecting adjustments for intangible amortization and restructuring expenses[38][39]. Operational Metrics and Expenses - The provision for lease merchandise write-offs was 7.7%, within the targeted annual range of 6%-8%[6]. - The company reported a provision for lease merchandise write-offs of $44,736 in Q3 2024, compared to $36,966 in Q3 2023, indicating an increase of 21.0%[13]. - Stock-based compensation for the nine months ended September 30, 2024, was $21,588,000, compared to $19,081,000 for the same period in 2023, showing an increase of approximately 13.2%[31][32]. - Restructuring expenses for the nine months ended September 30, 2024, totaled $20,906,000, compared to $1,958,000 for the same period in 2023, indicating a significant increase[31][32]. - Interest expense for the full year 2024 is projected to be between $31,000,000 and $32,000,000, with depreciation and amortization expected to total $9,500,000 and $18,000,000, respectively[33][35]. Non-GAAP Financial Measures - Non-GAAP net earnings for the three months ended September 30, 2024, were $33,412 thousand, compared to $41,676 thousand in the same period of 2023, reflecting a decrease of approximately 19.8%[28]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $208,346,000, compared to $236,455,000 for the same period in 2023, indicating a decrease of about 11.9%[31][32]. - Management emphasizes the importance of non-GAAP financial measures in assessing the company's performance and making strategic decisions, highlighting their relevance in the industry[24][25].